U.S. Policy Now a Headwind to Markets, Says Morgan Stanley

The video discusses the impact of trade disputes and tariffs on the U.S. economy, politics, and markets. It highlights the potential feedback loop from EU and China tariffs, the political challenges in addressing these tariffs, and the economic implications on GDP. The discussion also covers the market's reaction to policy changes and the role of companies like Comcast in the economic cycle.

What is a potential consequence of the EU and China imposing agricultural tariffs in response to US tariffs?

• Increased agency for egg farmers

• Immediate resolution of trade disputes

• A feedback loop that moderates US actions

• Strengthened political support for tariffs

How might steel and aluminum tariffs affect the US economy?

• They are likely to have no impact

• They could negate fiscal policy benefits

• They will boost GDP significantly

• They will only affect the agricultural sector

What is a concern related to increased leverage in the economic system?

• It reduces economic vulnerabilities

• It enhances fiscal policy effectiveness

• It creates late cycle economic vulnerabilities

• It has no impact on GDP

What shift in market expectations is highlighted for 2018?

• From negative to neutral market outlook

• From positive expectations to potential disappointments

• From stable to volatile market conditions

• From disappointment to positive expectations

How is US policy described in terms of its impact on markets?

• As a headwind

• As a neutral factor

• As a supportive force

• As an irrelevant element